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We Withdrawal from AUD for now

Hello Traders
We have withdrawn most of our AUD longs against USD and modestly against JPY. Our view is that commodity and equities selling will pressure the AUD to lower levels in the medium term. Our institutional colleagues are preparing to sell and we anticipate that this weeks PPI and CPI will trigger selling, even if the numbers are slightly above expectations. Weaker PPI and CPI numbers will reduce current institutional expectations of two rate hikes in 2011 and the RBA will likely change their language to neutral. We have done well on our long AUDJPY position and swing trades at support and the ranges have been day trading friendly. We are now only day trading the AUDJPY pair until we see more attractive lower levels for longer term positions. A move towards 80.00 (and 81.00) AUDJPY will attract buyers, as we anticipate JPY weakness through 2011 (barring panic selling). While AUDUSD should move below 96.00 and will see strong buy flows in the 92.00 to 94.00 range. Risks? ... a material commodities and equities correction that should last for some months.
We will begin to accumulate AUDJPY below 80.80.
video to come...
g2

Base for expectation... Question

Thanks for the great "heads up" G2.

I have a question if you have a minute. I think most everyone expects the Yen to weaken in 2011. But, is your thought that there may be some good long entry areas between 0.92-0.94 on the AUD/USD pair because of continued Aussie strength after this adjustment or expected USD weakness in the second quarter and beyond?

You mention "the RBA will likely change their language to neutral". Did this actually happen? How do you determine if their language is neutral, bearish or bullish? Is there some way I can find that out without having to ask you and wasting your time?

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